Have mortgage offer now incentive form to valuer??

vs747221

Hi everyone,

The ongoing saga with my house purchase continues....

I am buying a property and the developer is giving me a loan for the 9k stamp duty - to be paid back when we move the property or in 5 years (interest free) or secured on the property if we decided not to pay it back within 5 years (no comments please!)

. This was agreed at the last minute as the day before we were hoping for simultanius exchange and completion over a week ago as further incorrect information had been given by my estate agents. The developer has agreed to the above loan so we can pay for the stamp duty (which is 9k for our puchase) . Our Lender have said this is fine on affordabilty so no issues there, however they need to have this approved by a valuer (we were not aware we would be in this position at time of valuation.)

Our house valued at exactly what we are paying for it , and this is a loan we are getting to pay for the stamp duty. We are having to send over a disclosure of incentives form.

Any idea what the valuers are likely to say? Lender / solicitor always likes to drop a bombshell on us on a friday afternoon!

Please please any advise on what the valuer is likely to do/say?

Many thanks in advance!

brit1234

Sounds like another dodgy gift deposit scam. Why can't they just drop the price for you instead?

Thrugelmir

vs747221 wrote: »

Our house valued at exactly what we are paying for it ,

My reading would be that your are £9k short in order to complete the purchase. For intents and purposes the stamp duty is part of the cost of buying the house. Not sure how the EA could have messed up either.

vs747221

Thrugelmir wrote: »

My reading would be that your are £9k short in order to complete the purchase. For intents and purposes the stamp duty is part of the cost of buying the house. Not sure how the EA could have messed up either.

Yes I am 9k short, the estate agent told me I was stamp duty exempt. I am a ftb and was told that as the property is shared equity and my stake is under 250k i would not have to pay stamp duty... my ea advised they had checked this with their solicitor and mine before i proceeded to mortgage stage.

The assistance i need is regarding the valuer situation if anyone is able to assist?

vs747221

brit1234 wrote: »

Sounds like another dodgy gift deposit scam. Why can't they just drop the price for you instead?

They will not drop price and I have deposit ....

JQ.

I'd imagine they'll reduce their valuation by £9k, or possibly some smaller amount that represents a percentage of £9,000. Why not just reduce your offer and pay your own stamp duty.

Thrugelmir

vs747221 wrote: »

I am a ftb and was told that as the property is shared equity and my stake is under 250k i would not have to pay stamp duty...

Depends on who the scheme is run by.

vs747221

Thrugelmir wrote: »

Depends on who the scheme is run by.

It is run by the developer

poppy10_2

The lender might pull out if they consider the selling price has essentially been artifically inflated by £9k. Or they could get cold feet when they hear the developer is planning to place a second charge on the property. Lenders are wary of shared ownership scams for good reason. Best thing is to keep them informed at an early stage rather than waiting to get caught out at the last minute, let them know of the arrangement you have come to with the developer and see what they say